Portugal ranked as the second best destination in the world for retirement in 2025

Portugal was voted the best retirement destination in Europe and the second best globally, according to the 2025 Annual Global Retirement Index. But what makes Portugal so attractive to retirees, especially those from the United Kingdom?

For Christina Hippisley, Director General of the Portuguese Chamber of Commerce in the United Kingdom, the answer lies in a combination of factors: the mild climate, the welcoming culture, the relatively low cost of living and the quality of health services.

Main results of the study:

In 2024, the Portuguese Chamber of Commerce in the United Kingdom conducted a study among its database to understand the retirement aspirations of the British population over 60 years old. The study revealed that:

• 68% of respondents are open to the idea of moving abroad in retirement.

• 75% indicated that leaving behind family and friends is a relevant concern.

• Portugal appears as a viable option, given its proximity to the United Kingdom and easy air access.

• 36% of retirees want to remain professionally active through remote or part-time work.

Health system and quality of life

Concern for health is a determining factor for retirees. The study revealed that 87% of respondents consider access to health care a decisive factor in moving to another country. Portugal has a robust healthcare system, with high-quality and affordable public and private options compared to other European countries.

Interestingly, only 20% of study participants ranked health as their top concern when considering a move abroad. Other factors, such as financial stability, quality of life, and proximity to family, seem to have greater weight in the decision.

Financial considerations and cost of living

Economic factors are essential in retirement planning. The study revealed that:

• 51% of respondents give priority to asset management and growth in retirement.

• 8% highlighted the importance of creating wealth for future generations.

• 64.5% already own their primary home, which provides financial security and flexibility when buying property abroad.

Portugal offers several financial advantages for retirees. The cost of living is generally lower than in many British cities, especially when it comes to housing, utilities and daily expenses.

Logistical challenges and cultural integration

The language barrier was mentioned by 34% of respondents as a potential obstacle. However, many expats are able to adapt easily, especially in regions such as the Algarve and Lisbon, where there are well-established international communities and where English is widely spoken. Still, learning Portuguese facilitates integration and enriches the experience of living in the country.

Portugal's future as a retirement destination

According to Christina Hippisley, interest in Portugal as a retirement destination will continue to grow. The increase in remote work opportunities and the search for a more balanced lifestyle make the country an ideal destination for those looking for more than just a place to rest, but also to invest and enjoy a high quality of life.

With constant improvements in infrastructure, healthcare and services for expatriates, Portugal is well positioned to maintain its status as one of the world's best destinations for retirement.

Source: Portugal resident